Group Performance by Region and Country

Annual Report 2012

In 2012, Turkey posted healthy economic growth of approximately 2.2%. Driven by the positive momentum of the country’s economy, cement consumption increased by an estimated 4% year on year, reaching a new high of 58 million tons. At the same time, cement exports increased, on the back of market recovery in Russia and signs of improvement from other traditional export destinations in the Mediterranean. Despite increased production levels, however, the Turkish cement industry remains one of excess capacity.

Adocim, TITAN's 50-50 joint venture with Ado Group in Turkey, benefited from strong demand both from private housing and public works. The company’s cement production posted yet another record year, while clinker production was maintained at the 2011 record level. Ready-mix concrete operations increased sales, thus enhancing vertical integration. During 2012 Adocim fulfilled significant cost optimization targets and improved efficiency, while setting even higher goals for 2013.

Market prospects for 2013 remain positive. Domestic demand is anticipated to continue growing. New housing and transportation projects are expected to continue translating population growth into a sustainable growth trajectory for the sector.